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Friday, November 26, 2021

Starting a Budget

Everyone needs a budget for their day-to-day living expenses. This is the only way one will be financially successful.

Here is how one person I know does it: 

Get a Seeitbigger calendar planner from Walmart. 

Write down every paycheck on the day it comes in and the amount.

Write in every bill on the day it is due. I do this 2 months in advance.

In a 5 subject notebook date four pages per paycheck. 

On one page write a list of all bills that must come out of the paycheck. (refer to your planner calendar) and add them together. 

Include amount for groceries, one for gas. Add anything, not in those 3 categories that must be paid out of the paycheck. 

Hopefully, it is less than the paycheck. If not get a side income coming in or reduce somewhere. 

On another page divide it into 4 large boxes by drawing a large cross. 

Label box 1 as Bill's

Box 2 is groceries

Box 3 is gas

Box 4 is miscellaneous

On another page record those times that need to be spent on different insurance for car, home, pets. This would also include renters insurance if you rent a home or an apartment. 

Everything spent out of the paycheck must be written down in a box so you can see where your money is going. 

I try to pay most Bill's first. 

The other two pages work like a running check register. Look at your balance every couple of days. 

Write down what you are spending. 

It helps me to have a 3 in 1 bank account with direct deposit. 

10 % is deposited in account 1 for tithes, 

10% in account 2 for savings and the rest in debt to pay Bill's. 

If you don't know your set amount to budget for groceries or gas then get a notebook and keep a 2 monthly journal of spending to get an average. 

Remember to calculate things that come up once per year like a pet's yearly exam, property taxes, car registration, and insurance for home, health, and car.

 Another reason is to use a calendar planner and work your budget ahead as much as possible so you won't get caught off guard.